LNG producer will enter Texas market with Dallas-area plant

A California liquefied natural gas producer is set to build a production plant in North Texas that could initially produce 86,000 gallons of fuel per day.

Applied Natural Gas Fuels said Wednesday the plant in Midlothian, about 30 miles south of Dallas in Ellis County, would fire up in 2015 seeking to attract buyers in high-horsepower, trucking, oil and gas and similar industries that normally consume diesel fuel.

A boom in U.S. natural gas production has made LNG competitive with diesel for such uses.

The Midlothian plant will be the company’s first in Texas. It is also doubling production at its existing plant in Topock, Ariz., to 170,000 per day.

The company said it has secured the North Texas land and begun seeking required permits.

The facility will have five liquefiers, each with daily production capacity of 86,000 gallons per unit, but the company will start up the liquefiers one at a time as the market develops, said Shawnt Hartounian, a spokesman for the company.

He said other liquefied natural gas producers are pumping at full throttle, but that it’s hard to sell large quantities while demand is in its early stages.

Cem Hacioglu, the company’s CEO, said in a written statement that liquefied natural gas “is a proven fuel with a strong track record that will continue to move us toward energy independence.”

Apache Corp. has opened a new compressed natural gas fueling station in Houston, near the Galleria mall.

Apache Corp. has opened a new compressed natural gas fueling station in Houston, near the Galleria mall.

Photo: Zain Shauk / Houston Chronicle

Image 2 of 10

Apache Corp. has opened a new compressed natural gas fueling station in Houston, near the Galleria mall.

Apache Corp. has opened a new compressed natural gas fueling station in Houston, near the Galleria mall.

Photo: Zain Shauk / Houston Chronicle

Image 3 of 10

Apache Corp. has opened a new compressed natural gas fueling station in Houston, near the Galleria mall.

Apache Corp. has opened a new compressed natural gas fueling station in Houston, near the Galleria mall.

Photo: Zain Shauk / Houston Chronicle

Image 4 of 10

A recent fill-up at the Apache station pumped the energy equivalent of 11.6 gallons of gasoline for a total of $17.66.

A recent fill-up at the Apache station pumped the energy equivalent of 11.6 gallons of gasoline for a total of $17.66.

Photo: Zain Shauk / Houston Chronicle

Image 5 of 10

An AT&T van fills up at the new Apache Corp. compressed natural gas station on the corner of McCue Road and Gulford Court in Houston. Apache Corp. owns the station.

An AT&T van fills up at the new Apache Corp. compressed natural gas station on the corner of McCue Road and Gulford Court in Houston. Apache Corp. owns the station.

Photo: Zain Shauk / Houston Chronicle

Image 6 of 10

Anthony Carcamo, an AT&T field technician, fills up a company van at a new compressed natural gas fueling station on the corner of McCue Road and Gulford Court in Houston. Apache Corp. owns the station.

Anthony Carcamo, an AT&T field technician, fills up a company van at a new compressed natural gas fueling station on the corner of McCue Road and Gulford Court in Houston. Apache Corp. owns the station.

Photo: Zain Shauk / Houston Chronicle

Image 7 of 10

An AT&T van fills up at the new Apache Corp. compressed natural gas station on the corner of McCue Road and Gulford Court in Houston. Apache Corp. owns the station.

An AT&T van fills up at the new Apache Corp. compressed natural gas station on the corner of McCue Road and Gulford Court in Houston. Apache Corp. owns the station.

Photo: Zain Shauk / Houston Chronicle

Image 8 of 10

An AT&T van fills up at the new Apache Corp. compressed natural gas station on the corner of McCue Road and Gulford Court in Houston. Apache Corp. owns the station.

An AT&T van fills up at the new Apache Corp. compressed natural gas station on the corner of McCue Road and Gulford Court in Houston. Apache Corp. owns the station.

Photo: Zain Shauk / Houston Chronicle

Image 9 of 10

Apache Corp. has opened a new compressed natural gas fueling station in Houston, near the Galleria mall.

Apache Corp. has opened a new compressed natural gas fueling station in Houston, near the Galleria mall.